Government concerned about dip in LIC share price; calls it temporary blip

The government on Friday said it is "concerned" about the temporary blip in LIC scrip and the insurer's management will look into these aspects and raise shareholders' value. Life Insurance Corporation (LIC) was listed on the bourses on May 17 at Rs 872 a share.

The government had fixed the issue price of LIC shares at Rs 949 apiece after a successful Initial Public Offering (IPO) which was oversubscribed nearly 3 times.

Since the day of listing, LIC shares have remained below the issue price and had touched a low of Rs 708.70 and a high of Rs 920.

"We are very concerned about the temporary blip in LIC share price. People will take time to understand (the fundamentals of) LIC. LIC management will look into all these aspects and will raise the shareholders' value," DIPAM secretary Tuhin Kanta Pandey said.

Shares of LIC closed at Rs 709.70 on the BSE on Friday.